Nanjing, Jiangsu – System house Hongbaoli posted CNY473m ($67m) sales in Q1 2020, down by 21% compared with Q1 2019.
This is ‘mainly caused by a drop of sales volumes [because of the] coronavirus impact in the China market, as well as a decrease in product prices amid falling feedstock prices,’ said the company’s Q1 report published in April.
Nevertheless, net profit during the period jumped 20% year on year to CNY25m. Net profit less non-recurring items rose by 33% to CNY24m.
Hongbaoli attributes the rise in profits to its ‘lowered selling expenses and growing product profitability’ in the report. Selling expenses in Q1 2020 fell by 26% from a year ago to CNY19m.
Net cash flow generated from operating activities during the period was negative CNY51m, compared with negative CNY70m a year ago.
The company’s 120kT/year propylene oxide facility in Taixing, Jiangsu has been running at high capacity utilisation rate, Hongbaoli told UTECH-polyurethane.com.
Currency conversion: XE.com
